VA IRRRL Funding Fee

Does a VA IRRRL have a funding fee?

Many VA IRRRL transactions include a one-time VA funding fee unless the borrower qualifies for an exemption. The fee can generally be paid at closing or financed into the new loan. Because exemption status and current fee rules affect the loan amount, confirm the applicable treatment for the actual transaction.

Why the funding fee matters in the refinance math

If financed, the fee increases the new principal balance. If paid in cash, it increases the upfront cost. Either way, include it when comparing the old loan with the proposed IRRRL.

Funding fee exemptions

Some veterans and other eligible borrowers may be exempt from the funding fee. Do not assume exemption status from a generic article; the lender should verify it from the VA loan record and applicable documentation.

Funding fee vs. closing costs

The funding fee is only one potential cost. Title, lender and other settlement charges may also apply. See VA IRRRL closing costs and break-even.

Return to the VA IRRRL guide or request a loan review.

General information only. Funding-fee rules and exemption status must be confirmed for the actual loan. 360 Mortgage Inc. NMLS ID 80777.